Originally founded in 1989, Reaction’s Sabre technology – which is short for Synergetic Air Breathing Rocket Engine – can work like a normal jet engine before switching to rocket fuel when it reaches high altitude. Its technology led some to anoint it the heir to Concorde.

However, the company has struggled to commercialise its invention. 

Investors previously wrote down the value of their stakes in Reaction Engines, which had once plotted a £1bn initial public offering, by as much as 87pc as hopes of a bailout faded.

The business has secured investment from Rolls Royce and BAE Systems, as well as multiple government grants. However, it also burned through tens of millions of pounds a year.

In August, Schroders, an investor in Reaction Engines, warned: “Despite steps to commercialise its heat-exchanger technology and recent contract awards, revenue growth at Reaction Engines has been slower than management anticipated, and the company will require further investment and time to become cash positive.”

Sky News previously reported that Rolls Royce and BAE Systems were unwilling to inject further business into the company and that restructuring experts from PwC had been lined up for a possible administration.

The company raised £40m from investors last year, including backers from the UAE, bringing its total funding to more than £150m.

According to the most recently published accounts, Reaction’s annual losses in 2022 widened from £18.4m to £25.7m, while revenues fell from £7.2m to £4.7m.